Good news for the property & casualty commercial market … sort of.
According to the latest report from insurance distribution and underwriting company, MarketScout, "the composite rate for U.S. property and casualty insurance is closing in on flat or no increases." The report was focused on August 2014 rate trends for commercial insurers.
In order to retain the business they currently have, many insurers are being forced to moderate their pricing, explains MarketScout CEO Richard Kerr. And we could be heading for trouble. "If this trend continues, we should see annual rate declines very soon," Kerr says.
The average rate increase in August was 1%.
A few of the other key findings from the report:
- As measured by coverage classification, property rates were actually up slightly at plus 3%.
- Business interruption was down 1% to flat as were fiduciary and crime.
- Business owners' policies and commercial auto moderated from plus 3% to plus 2%.
- Umbrella liability coverage moderated from plus 2% to plus 1%.
- Workers' Compensation rates were up from plus 1% to plus 2%.
- Rates as measured by account size and industry classification remained the same as in July 2014.
Click through the following pages for charts and other data from MarketScout illustrating these trends.
| Rate changes by coverage class | |
| Commercial Property | Up 3% |
| Business Interruption | Up 0% |
| BOP | Up 2% |
| Inland Marine | Up 1% |
| General Liability | Up 2% |
| Umbrella/Excess | Up 1% |
| Commercial Auto | Up 2% |
| Workers' Compensation | Up 2% |
| Professional Liability | Up 2% |
| D&O Liability | Up 1% |
| EPLI | Up 1% |
| Fiduciary | Up 0% |
| Crime | Up 0% |
| Surety | Up 1% |
| Rate changes by industry class | |
| Manufacturing | Up 2% |
| Contracting | Up 3% |
| Service | Up 2% |
| Habitational | Up 2% |
| Public Entity | Up 1% |
| Transportation | Up 3% |
| Energy | Up 2%
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